University of Alberta School of Business Accounting 456/656
Assurance on Financial Information Syllabus
FALL 2016 Instructors: Erin Marshall, PhD, CPA, CA
Jocelyn King, CPA, CA
Classes
Office: Bus 3-40E A2: TR 11:00 am-12:20 pm (V 102)
Office Hours:
ERIN: M (5:15pm-6:15pm) T
(12:45pm-1:45pm) W by appointment (5:15-6:15pm)
JOCELYN: TR12:30 pm-1:50 pm and by appointment
E-mail: [email protected] [email protected] 1. Course Description and Objectives
The primary objective of this course is to introduce students to the principles of auditing and assurance services. The course is designed to provide students with an understanding of the need for audit services, the objectives of the audit and the planning and execution of the audit to meet these objectives. The course aims to provide students with an understanding of the complete audit process, including the assessment of risk associated with the client’s business and the financial statement components. Auditing theory links audit fieldwork to specific objectives (audit assertions), which translates to appropriate collection and evaluation of evidence.
Throughout the course, emphasis will be placed on developing critical and practical thinking skills necessary for competency in the area of audit.
Please note that this course is not designed to teach students how to audit and as a result, auditing procedures will not be performed and audit/accounting software will not be used.
This course incorporates the Learning Goals of the BCom Program, in particular, Critical thinking, Ethical Awareness and Written Communications.
2. Academic Integrity
The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online
at www.governance.ualberta.ca) and avoid any behaviour which could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence.
Academic dishonesty is a serious offence and can result in suspension or expulsion from the University
3. Course Materials and Activities 3.1. Textbook
Hardcover Auditing: A Practical Approach, Extended Canadian Edition ISBN : 978-1- 118-87841-5 (2015) This is available in hardcopy at the Bookstore or in ebook version at https://www.wileyplus.com/WileyCDA/. There are also on-line materials available at Wileyplus.
3.2. Ulearn
You will be able to obtain information for use in-class and related materials from Ulearn at https://ulearn.ualberta.ca/
3.3. In-class Activities
Our classes will be a combination of lectures and discussions and in-class assignments.
Presence at lectures, participation in classroom discussions, and the completion of recommended questions are important components of this course. Students will serve their interests best by regular attendance in class. Those who choose not to attend must assume whatever risks are involved.
Students are responsible for all information provided in class (e.g., announcements, lectures etc.).
If you are absent in a class, it is your responsibility to arrange for someone else in the class to provide you with the information you may have missed.
Participation: Active participation is critical to success in this course and in a business environment. Participation will be assessed based on the student’s participation in class
discussions. Ample opportunity will be given for everyone to participate. Those who make little effort to participate, absent themselves regularly or engage in otherwise unprofessional
behaviour in class can expect the participation component of the grade to be impacted accordingly.
In-Class Assignments: The in-class assignments can be submitted in groups (recommend 2-3 maximum) or individually. The course schedule indicates the dates of the in-class assignments.
Four exercises will be assigned and submitted in-class throughout the term. Your mark for this component will be based on your performance on all four assignments. If you miss a class assignment for a valid reason (e.g., permission obtained prior to class) the % for the missed assignment will be added to your final exam grade. To receive credit for missed
assignments you MUST inform the instructor of your absence the day before or the day of the assignment (PRIOR TO CLASS). Make up assignments are not granted and if you contact the instructor after the assignment time has passed, a mark of zero will be assigned.
Assignments will only be remarked in the case of a marking error or other extenuating
circumstances. Any issues with grading must be raised by the class following the class in which the assignments were returned.
Quizzes: Two (2) scheduled in-class quizzes / assignments will be administered in this course.
Please see the tentative class schedule (last page of syllabus) for dates. Quizzes will cover material from the assigned textbook readings, lecture(s) materials and chapter recommended questions assigned. There will be no opportunity to make up an in-class quiz. The purpose of the quizzes is to provide you with an incentive to complete your readings and take an active role in the in class activities.
3.4. Out-of-class Activities
A list of suggested problems from the textbook are identified in the attached class schedule.
Students should also answer the multiple choice questions at the end of each chapter. You can check your answers against the solutions posted on Ulearn.
4. Evaluation
Your grade in this course will be based on the marks you obtain on participation, four (4) in class quizzes/assignments, one (1) case analysis, one (1) eighty (80) minute midterm exam, and a (2) two-hour comprehensive final exam. These marks will be weighted as follows to determine your percentage mark in the course:
Participation
In Class Quizzes/Assignments
10%
12%
Midterm Exam 23%
Case 20%
Final Exam 35%
Total 100 %
Letter grades will be assigned to the percentage marks in accordance with University
Regulations [Section 23.4(4) of the University Calendar]. Grades in this course will be based on a combination of absolute achievement and relative performance.
These grades represent the only marks available to students. No additional work or extra credit is available.
4.1. Case
There will be one (1) case assignment administered in this course. The assignment will take the form of a longer problem. The assignment and instructions will be posted on Ulearn. Your submissions will be due at 11:00am on Thursday, November 24, 2016 although you are welcome to submit it earlier. The assignment solution should be in submitted in MS word and Excel via the assignment function on Ulearn. Late submissions will be assessed a penalty of 33⅓- percentage points for each day that it is late; therefore, any submission more than two days late will receive a mark of zero.
4.2. Exams
All exams in this course will be closed book.
• For the midterm you will be allowed one (1) single sided piece of 8.5 x 11 paper handwritten with whatever notes you would like.
Students are not permitted to use cellphones or any other form of electronic communication devices.
You will have eighty(80) minutes to write the midterm exam and two (2) hours to write the final exam. The final exam will be comprehensive.
Section 23.5.1 of the Calendar provides the University Regulations for the conduct of exams. At an exam, students must be able to present their student ID cards or other acceptable photo
identification. Cell phones, iPods, and other electronic devices must be turned off and put away prior to the exam.
4.3. Absence from Term Work or Term Examinations
Occasionally life events occur that require a student to miss term work, term examinations, or final examinations. However, excused absences are not granted automatically and will be
considered only for acceptable reasons such as incapacitating illness, severe domestic affliction, or religious convictions.
Unacceptable reasons include, but are not limited to personal events such as vacations, weddings, or travel arrangements. When a student is absent without acceptable excuse, a final grade will be computed using a raw score of zero for the work missed. Any student who applies for or obtains an excused absence by making false statements will be liable under the Code of Student
Behaviour.
4.3.1. Absence from Midterm examination
If you are absent from the midterm exam your absence indicates that you accept that the 25% from the midterm examination will be transferred to your final exam. This means your final exam (barring any other absences from other items) will be worth a minimum of 58%. THERE ARE NO MAKE UP OR DEFERRED MIDTERMS.
4.3.2. Absence from Final examination
Section 23.3(2) and 23.5.6 (1) of the Calendar provides the University Regulations regarding procedures in the case of a missed final examination. If a deferred final exam is required for this course, it will tentatively be held on Friday, January 13, 2017 at 10:00 am.
4.4. Final Exam Viewing and Reappraisals
If you wish to view your final exam, please email me to set up a time. Please note that no answer key will be provided. This is not a time to ask questions about how a question should have been answered but to review for any addition errors and any marking issues. For clarification, I will not have time to review your final exam with you in detail or to provide further guidance on class material.
For information regarding applying for a reappraisal of your final exam please see Section 23.5.4 (2) of the Calendar.
4.5. Remarking Policy for Assignments, Midterm Exam and Group Project
After marked assignments and midterm exam papers have been returned, the answer key or a sample answer will be posted on Ulearn. Students should review the marking carefully and bring to the instructor’s attention any questions about their marks as soon as possible. No remarking requests will be accepted more than one week after the results have been made available. All appeals must be in writing and must be made AFTER viewing the solution and the original copy of the exam, quiz, or assignment (unless available on-line) must be attached. Marking errors can of course, be discussed quickly and corrected immediately.
Please note that if you request your assignment / midterm be remarked, the grade can go up or down and the remarked grade will serve as the official grade.
NOTE: ALL MARKING QUESTIONS FOR THE MIDTERM AND ASSIGNMENTS MUST BE BROUGHT TO THE INSTRUCTOR’S ATTENTION IN CLASS OR BY EMAIL ON OR BEFORE OCTOBER 20TH. AFTER THIS DATE NO QUESTIONS WILL BE ANSWERED ABOUT THE MIDTERM.
4.6. Participation
The following applies to Jocelyn’s portion of the class and will represent 50% of your total participation grade:
Name cards will be used to allow me to give you credit for your participation. You must have your name card with your name clearly displayed in front of you for each class.
Participation will be assessed according to the following rubric:
Level Description
0 Does not attend class, or attends and is disruptive. (including arriving late, cell phones ringing and distracting others during class
1 Attends class, but does not contribute to the discussion.
2 Contributes by asking/ answering
questions, and making comments.
Preparation for class is evident. Questions/
comments are primarily factual in nature.
3 Demonstrates good preparation for class, contributing to both the lecture component and the discussion questions. Offers insight and adds significant value to the discussion.
5. Other
Recording of a lecture is permitted only with the prior written consent of the professor or if recording is part of an approved accommodation plan.
Policy about course outlines can be found in Section 23.4(2) of the University Calendar.
COURSE SCHEDULE (FLEXIBLE AS SEMESTER PROGRESSES)
1
Review Topic Readings Recommended
Problems1
Deliverables
Sept 1 Introduction Course Outline &
Introduction Sept 6 Audit and Assurance Services &
Introduction to the Auditor’s Report
Chapter 1 &
Chapter 13 (482- 490)
Review: 1.1, 1.7, 1.9, Prof. App: 1.3,
1.6, 1.7, 1.8 Sept 8 The Auditor’s Report Chapter 1 &
Chapter 13 (482- 490)
Review: 1.1, 1.7, 1.9, Prof. App: 1.3,
1.6, 1.7, 1.8 Sept 13
Audit Evidence: Financial Statement Cycles & Audit
Assertions
Chapter 5.1 Prof App: 5.1, 5.2, 5.3, 5.4
Sept 15 Overview of the Audit Process Chapter 3.1 In-class
assignment #1
Sept 20 Audit Evidence
Chapter 5 (except 5.1 covered Sept
13)
Review: 5.2, 5.3 Prof. App: 5.5,
5.6, 5.11, 5.12
Sept 22
Office of the Auditor General (OAG)
Topic Coverage: Public Sector Auditing and Selected Topics Notes: Will be given by the OAG
This is a topic in the course – it is not just a presentation
Sept 27 Audit Evidence Cont’d
Chapter 5 (except 5.1 covered Sept
13)
Review: 5.2, 5.3 Prof. App: 5.5,
5.6, 5.11, 5.12
Sept 29 Audit Risk Chapter 4.1
Review: 4.9, 4.10 Prof App: 4.4, 4.5
Oct 4 Audit Risk Cont’d Chapter 4.1 In Class
Problems
Oct 6 Materiality Chapter 4.2 Review: 4.2, 4.3
Prof App: 4.8
In-class assignment #2 Oct 11 MIDTERM EXAMINATION (25%) Ch.1, Ch. 3.1, Ch. 4.1, 4.2, Ch. 5
Oct 13
MIDTERM REVEW CLASS (as needed) / Specific Topics (TBD) / Ethics and Independence Chapter 2 (pg. 38-51) Review: 2.2
Prof App: 2.4, 2.8, 2.17
Oct 18 Client Acceptance and Audit Planning I
Chapter 2 (pg 55-59) Chapter 3 (except
3.1, 3.4)
Prof App: 3.2, 3.6, 3.9, 3.13
Oct 20 Audit Planning I
Discussion Questions P.A. 3.7, Case 3.17 and Cloud 9
See previous class
Oct 25 Audit Planning II
Chapter 4 (except 4.1 & 4.2) Discussion Questions: PA
4.16 & 4.17, Cloud 9
Prof App: 4.9, 4.13 & 4.15
Oct 27 Audit Sampling
Chapter 6, Discussion Questions: PA 6.2,
PA 6.10, Cloud 9
Prof App: 6.1, 6.3, 6.14, 6.16,
6.18
Nov 1 Internal Controls Part I
Chapter 7 Discussion Questions PA
7.12, PA 7.13, Cloud 9
Prof App: 7.2, 7.4, 7.7, 7.14,
7.16
Nov 3 Execution of the Audit – Substantive procedures
Chapter 8 Prof App:: 8.2, 8.10, 8.11, 8.14
Quiz #1
Nov 8, 10 NO CLASSES – FALL BREAK
Nov 15 Execution of the Audit – Substantive procedures
Chapter 8 Discussion Questions: PA 8.7
and Cloud 9
See previous class
Nov 17 Auditing Sales and Receivables
Chapter 9 Discussion Questions:
PA9.7, PA 9.14
Prof App: PA 9.2, PA 9.11, PA
9.13
Nov 22 Auditing purchases, payables and Payroll
Chapter 10 Discussion Questions: PA 10.2, PA 10.7, PA
10.13
Prof App: 10.1, 10.4, 10.6
Quiz #2
Nov 24 Auditing Inventories and property plant & Equipment
Chapter 11 Discussion Questions: PA
11.2, PA 11.4, Cloud 9
Prof App:11.3, 11.8
Cases Due
Nov 29 Auditing Cash and Investments
Chapter 12 Discussion Questions: PA 12.10, PA 12.5,
Cloud 9
Prof App: 12.1, 12.7
Dec 1 Completing the Audit
Chapter 13 Discussion
Questions PA13.12, PA
13.21
Prof App: 13.3, 13.4, 13.13, 13.18
Dec 6 Wind up and Final Exam Review
Dec 12 Final Exam: 9:00 am – 11:00am
Deferred Final exam: January 13, 2017 – 10 am – 12:00 pm
